Abstract:
This paper introduces reader with National Stock Exchange of India. This research will help
to understand factors of share underperformance at the date of offering and first-day trading
return in the range of pre-IPO and post-IPO. Previous research proved the fact that IPOs in
India underpriced at first day of trading, there share price at the end of 1 st , 7 th , 15 th and 30 th
trading day checked against the offer price. This study pursued short-term performance of
post-IPO share prices. The objectives of the research:
measure the IPOs performance on first 30 trading days to confirm that whether
investors can earn positive return on the close of these trading days.
assess the short-run performance of IPOs for firms listed at the National Stock
Exchange.
to calculate market adjusted short-run returns, wealth relative index to get an in-depth
knowledge about the IPOs performance.
to analyze the factors influencing price performance of IPOs.
Sample were taken from 2021 and 2020 IPOs, there were 81 public offering in NSE, 62 of
them have fitted sampling criteria.
This research has found that IPOs in India were underpriced by an average 81% of 62
initially issued companies.
